Hey hey: what's up my friends, so in today's episode i want to share with you six six powerful trading lessons that can be applied in real life. So here's the thing right, you know as a trader. It teaches many lessons and some of these lessons right to the layman on the street right. They will never learn because they are not involved in trading, and i find that some of these lessons are really powerful that that you know, even if you don't trade, the markets right.

These lessons can be applied to the real world of trading and you will see an improvement right to your everyday life. So let me share with you the first lesson you want to do things which are scalable. So what do i mean by this? So as a trader, this is a business that is scalable. So, for example, let's say you know you can do 20 a year on average with a thousand dollars account.

That's about 200 bucks a year, not a lot right. But if you scale up your account, let's say now: you know a hundred thousand dollars. That's about 20k a year. Let's say you scale up, you know even further to a million dollars account that's about 200 000 a year, so you can see that you're still doing the same 20 a year, but because of the size of your account, because you are scaling up, you are making A lot more money, and if you think about this right aside from the psychological impact of trading more money, the amount of effort, the amount of work that you put into to trade that account to make that 20 a year is largely the same as trading.

That thousand dollars account there's no so-called extra work that you need to put into right. There's no see that's not to say that you need to put in more more more energy into it right. You need to put in more hours. No, that's not the case right.

It's pretty much scalable, so this is what i mean by you know: do things which are scalable so, for example, me producing videos on youtube. It is something that is scalable whenever i publish a video if it goes viral, like a million views that video keeps churning out a revenue for me in the sense of you know, advertisement right that youtube places on my videos. That is something that is scalable. I don't have to put in extra work that video so-called you know works hard for me behind the scenes right.

That is something that is scalable or how about writing books. If you write books, you write it once you can keep selling unlimited copies, whether is it physical or whether is it. You know digital, it's unlimited, so you kind of like do it once all right and you get rewarded right for years to come so in trading. In life do things which are scalable, because that's how you get paid right over and over again that will change your life very completely.

Number two find favorable risk to reward trading opportunities. So this is something that you, you, heal all the time right in trading. You know if you're going to find low risk high reward trading opportunities, but when it comes to the real world all right, you know, how do you find such opportunities? So so, let's you know, let me let me just say you know, imagine right right now, you you, you get retrenched, you lose your job, and that is something that you can't change. It's a fact right.

Let's, let's imagine or you lose your job. It's a fact. You can't change it so at this point in time, if you think about this right, your risk is already it's already out there the risk that that you can lose anything more than that is almost negligion right. You really lose your job, there's nothing else more! You can lose, i mean unless you know you go to the casino you go into that blah blah blah.

But let's say you don't go down that path. Let's say you are someone who is logical right. You have lost your job at this point. You have to pretty much lose right as much as what you could possibly have, not the maximum, but almost there already.

So let's say you know for the next six to 12 months. You know you don't find another job. Let's say you know you can survive anyway. Right without working for the next six to 12 months - let's say you have ample savings.

So at this point in time. What? If, instead of looking for another job, you decided to invest in yourself right, maybe you know start a business. Do something that you have been passionate about, but just didn't have the opportunity to do so or but just didn't have the you know the uh stepping stone to do it, but since now that you have already, let's say retrench: well, guess what your risk is already Limited right, you really lose that job, there's no more risk to you right, but at the same time, if you go into something that is a new venture, a new business, your upside is pretty done high up right, the sky is the limit. So this is what i mean by no finding low risk and high reward trading opportunities.

So that's just one way to look at it, maybe not the best example, but i hope you can see where i'm coming from you're gon na do something that you know limits your risk right, but at the same time it doesn't cap your upside, where your arms Upside, it's almost unlimited all right. The third thing right, no matter how sure you are things, can go wrong. So, for example, trading right, you can do all the technical analysis in the world. You can do all the fundamental analysis in the world.

You can do all the sentiment analysis in the world. All the stars can align right, the stars, the moon, the asteroid, everything comes together, but guess what that trait could still be a loser, and this is important because, just like in trading and in life, all the stars can align right. This might seem like the opportunity of the lifetime, but it doesn't mean that it will definitely work out. Yes, the odds could be high, but it doesn't mean that it will definitely work out.

So let me give you an example. So back then right, i, as you know right. I work with a prop trading firm, but before that right there was a story right that i've not really shared. So let me just share with you briefly what happened so back.

Then i wanted to get a job in prop trading, so at this point i actually got hired by this from a a prop trading firm, and i realized that firm, a wasn't really for me because they are more towards a at a point in algorithmic trading. Right. Writing programs to trade, the markets, and that's not really for me, so i wanted to get out of firm a before. You know i sink any deeper.

So at that point in time right, firm, b, okay was hiring traders right. I went for an interview right. I passed it and they're looking to hire me, so i was very confident at the point in time that i could just leave firm, a and join fermi. You know, what's the issue, i just quit one from and joined the other form and that's what i did.

I left for me and at the point i was very confident that i will get hired at from b. After all, they really told me, i aced the interview they're just waiting for some people to get it done and before they hire me. So i left firm. A first and just wait to get accepted into firm b, but guess what the bosses right between firm, a and b they know each other and the boss said fermi kind of felt that the boss at firm b, is poaching his trader away and, of course, right.

These firms, right, they all work at a similar location. They call it a trading arcade, they all work at the same place, and it would be weird if you see the boss of another company that puts your trader. So you know it's not going to feel nice. So, at the point of time, from b, they decided - you know not to hire me just yet.

They wanted to. You know, make peace with firm, a make sure that you know all the arrangement goes smoothly before they hire me. So i waited for a few days. A few days, ten to a few weeks few weeks, then to a few months and eventually i didn't get hired and that sucks that hit me really hard, because i really wanted the job so bad yeah.

I find that you know from b was the firm for me it like really resonated with you know their culture, the way they trade, the markets and i wasn't hired. I was so sure that i'm going to get hired that i end up didn't get hired. So that's the thing i want to share with you is that all the stars can align that, but no matter how sure you think things could turn out right. It sometimes just don't play out the way you want it to be.

Okay. So that's the third lesson right, no matter how short you you are, things can go wrong and number four. A good outcome right doesn't mean that it's the right choice so, just like in trading you might be able to average into your losses. Why don't your stop-loss and the market could go back in your favor and maybe give you a profit, but a good outcome doesn't mean it's the right choice, for example: drink driving right, let's say you drink alcohol.

You know - and you drive back home after a clubbing session. Well just because you didn't get into an accident just because you didn't get caught by the pool. Is it's a good outcome right but doesn't mean that it's the right choice? Because it's a matter of time right, if you keep doing that same set of actions consistently over time, it's a matter of time before you meet up with an accident or you get caught by a police and you lose your license. So that's what i'm trying to say is that a good outcome doesn't mean it's the right choice.

So whenever in life right you're making decisions, you might end up with a favorable outcome. But i want you to take a step back and ask yourself right. Is that a good decision right, because the outcome right is independent of the decision? Good outcome can be due to bad decisions right, so think about that. The fifth thing right, a bad outcome - doesn't mean that it's the wrong choice so back to my prop trading day.

So clearly, right at that point in time, i i might think you know you know man, i shouldn't have left from a man. No, i don't have a job, no trading phone, no hire me and that's a bad outcome, but is that a bad choice? Is that a bad decision? Well to me, i persevered right. I choose to believe right that what i did was the right thing to do, because at the point of time i am pretty much a clean slave over here i didn't know what politics were. I didn't know you know how the real world works right.

So at that point, if it were to happen to me again, i would probably make the same decision, but the outcome didn't work out in my favor, but was it a bad decision to me? I persevere on. I took that as a lesson and i continued finding right a prop trading job and eventually i got hired by firm c now. How did that get resolved right? What about you know the politics issue, the poaching of traders? How did that work out? Well, guess what? Because the bosses of pharmacy hated the boss at firmly, so he didn't care. You know whether he's poaching his trader or not at a point in time.

He wasn't already poaching, because i already left the firm. So he just hired me anyway. If he upsets the upset, the boss said for me. So beat he doesn't care, so i eventually got hired at pharmacy and that's how pretty much my prop trading journey began right so again right just because the outcome is bad, doesn't mean it's the wrong decision.

Do you have time right to make things work out? For you right, you always can make things work out for you, so don't give up just yet and finally, the last lesson number six never go all in no matter. How sure you are of an opportunity is right, never go all in this means. You don't put 100 of your wealth into something, whatever venture that you have because, as i've mentioned earlier right, no matter how sure you are things can go wrong. So imagine if you go all in all your wealth, all your money, all your cash into this business! Venture and you lose it because one percent of the time things don't work out, guess what you're at zero and when you lose all your chips, you can't play the game any further.

When you blow up your trading account, guess what it's game over when you go to a casino, you lose all your chips, it's game over when you lose all your money in life. Well, it's not game over. You can still earn it back right, but you can see that you are going to set yourself back many many years. So don't go all in right.

If you know you might want to set a general guideline of, you know, maybe not risking more than 5 or 10 of your your money into one particular idea or venture or whatsoever, never go all in because you never know what could happen. And if things really don't turn out your way, you can see that you're gon na set yourself back to zero and that's many years of your life right kind of wasted, because you just made one wrong decision. Okay, so as a quick recap right, these are the six lessons i spoke today. Number one do things which are scalable number two find favorable risk to reward opportunities.

Number three, no matter, no matter how sure you are things can go wrong. Number four, a good outcome! Doesn't mean it's the right decision number five, a bad outcome doesn't mean it's the wrong decision and number six never go all in. So i hope you got value out of today's episode. I wish you good luck.

Good life i'll talk to you soon. You.